The Marketing Alliance Announces Financial Results for Second Quarter Ended September 30, 2026
ST. LOUIS, Nov. 13, 2026 (GLOBE NEWSWIRE) -- The Marketing Alliance, Inc. (OTC: MAAL) (“TMA” or the “Company”),
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ST. LOUIS, Nov. 13, 2026 (GLOBE NEWSWIRE) — The Marketing Alliance, Inc. (OTC: MAAL) (“TMA” or the “Company”), announced its financial results today for its fiscal 2027 second quarter ended September 30, 2026.
Q2 2027 Financial Key Items (all comparisons to the prior year quarter)
- Operating income from continuing operations of $528,673 compared to $280,432 in the prior year quarter, an increase of approximately 89%
- Income from continuing operations was $403,202 or $0.06 per share compared to $366,528 or $0.05 per share in the prior year quarter
- Net income was $366,249, or $0.05 per share, compared to $263,407, or $0.04 per share in the previous year quarter
- Operating EBITDA (excluding investment portfolio income) was $531,973 compared to $284,893 in the prior year quarter
- Insurance commission and fee revenue was $4,497,423 compared to $4,391,678 in the prior year period, an increase of 2%
Management Comments
Timothy M. Klusas, TMA’s Chief Executive Officer, commented, “We were very pleased with the increases in operating income and Operating EBITDA this quarter. As we stated in prior comments after financial results, we increased marketing staff to the insurance business to address our effort to further grow and develop our business, and the last vacant role was filled during the first fiscal quarter ending in June. Our results have been encouraging, and both carriers and agencies responded favorably to the added resources and capabilities of our team.”
Klusas continued, “In addition to the investment in additional marketing staff, we identified and implemented new revenue streams for our call center that were initiated during the quarter ending in June and fully implemented in this quarter. Lastly, our annuity business within the insurance distribution business continued to perform well. It also benefited from a change in one carrier’s compensation agreement. Beginning this year, that carrier pays monthly based on production rather than an annual bonus tied to a full-year target. We expect the year-over-year timing difference to even out by the end of next quarter, when the annual payment was historically earned.”
Q2 2027 Second Quarter Financial Review
- Insurance commissions and fee revenue were $4,497,423 compared to $4,391,678 in the prior year quarter, an increase of over 2%.
- Net operating revenue (gross profit) for the quarter was $1,175,452 compared to net operating revenue (gross profit) of $892,467 in the prior year quarter, an increase of over 32%.
- Operating expenses increased slightly this quarter to $646,779 from $612,035 in the prior year quarter, primarily due to increases in compensation, travel and insurance.
- The Company reported operating income from continuing operations of $528,673 compared to $280,432, in the prior fiscal year quarter, due to the factors noted above.
- Net income was $366,249, or $0.05 per share, compared to $263,407, or $0.04 per share in the previous year quarter.
- Operating EBITDA (excluding investment portfolio income) of $531,973 was an increase from the prior year quarter of $284,893. A note reconciling operating EBITDA to operating income can be found at the end of this release.
- Investment gain (loss), net (from non-operating investment portfolio) for the quarter was $6,279 as compared with $155,096 in the previous year quarter.
- Income from continuing operations was $403,202 or $0.06 per share compared to $366,528 or $0.05 per share in the prior year quarter. The increase was due to higher operating income from continuing operations but offset by higher non-operating investment gains in the prior year quarter,
On May 15, 2026, the Company announced it had sold to an unaffiliated purchaser substantially all of the equipment assets of its construction business, Empire Construction, Inc. and all the real property associated with the Empire Construction business. The Company has elected to classify the construction business as a discontinued operation, and amounts may differ from the fiscal year 2026 financials as a result.
Balance Sheet Information
- TMA’s balance sheet on September 30, 2026, reflected cash and cash equivalents of $3.8 million, working capital of $6.6 million, and shareholders’ equity of $6.7 million, compared to cash and cash equivalents of $2.0 million, working capital of $5.3 million, and shareholders’ equity of $5.7 million as of September 30, 2025.
About The Marketing Alliance, Inc.
Headquartered in St. Louis, MO, TMA provides support to independent insurance brokerage agencies, with a goal of integrating insurance and “insuretech” engagement platforms to provide members value-added services on a more efficient basis than they can achieve individually.
Investor information can be accessed through the shareholder section of TMA’s website at:
http://www.themarketingallianceinc.com.
TMA’s common stock is quoted on the OTC Markets (http://www.otcmarkets.com) under the symbol “MAAL”.
Forward Looking Statements
Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect TMA’s business and prospects. Examples of forward-looking statements include, among others, statements we make regarding our expectations of growth based upon our investments, including adding personnel, in our insurance business, and our plans to reduce expenses. Any forward-looking statements contained in this press release represent our estimates, expectations or intentions only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our views as of any subsequent date. These statements involve a number of risks and uncertainties, including, but not limited to, expectations of the economic environment, material adverse changes (including the effects of inflation) in economic conditions in the markets we serve and in the general economy; the ways that insurance carriers may react in their underwriting policies and procedures to the continuing risks they perceive from public health matters; our reliance on a limited number of insurance carriers and any potential termination of those relationships or failure to develop new relationships; privacy and cyber security matters and our ability to protect confidential information; future state and federal regulatory actions and conditions in the states in which we conduct our business; our ability to work with carriers on marketing, distribution and product development; pricing and other payment decisions and policies of the carriers in our insurance distribution business, and changes in the public securities markets that affect the value of our investment portfolio. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.
| Contact: | ||
| The Marketing Alliance, Inc. | -OR- | The Equity Group Inc. |
| Timothy M. Klusas, President | Jeremy Hellman, Vice President | |
| (314) 275-8713 | (212) 836-9626 | |
| tklusas@themarketingalliance.com | jhellman@equityny.com | |
| www.TheMarketingAllianceinc.com | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Insurance commission and fee revenue | $ | 4,497,423 | $ | 4,391,678 | $ | 9,251,399 | $ | 9,071,982 | |||||||
| Insurance distributor related expenses: | |||||||||||||||
| Distributor bonuses and commissions | 2,750,795 | 2,959,217 | 5,871,113 | 6,147,299 | |||||||||||
| Business processing and distributor costs | 571,176 | 539,130 | 1,134,004 | 1,058,756 | |||||||||||
| Depreciation | – | 864 | 864 | 1,728 | |||||||||||
| Total costs of revenues | 3,321,971 | 3,499,211 | 7,005,981 | 7,207,783 | |||||||||||
| Net operating revenue | 1,175,452 | 892,467 | 2,245,418 | 1,864,199 | |||||||||||
| Total general and administrative expenses | 646,779 | 612,035 | 1,316,495 | 1,243,592 | |||||||||||
| Operating income from continuing operations | 528,673 | 280,432 | 928,923 | 620,607 | |||||||||||
| Other income (expense): | |||||||||||||||
| Investment gains (losses), net | 6,279 | 155,096 | 136,780 | 257,670 | |||||||||||
| Interest | – | – | (12,214 | ) | |||||||||||
| Income from continuing operations before provision for income taxes | 534,952 | 435,528 | 1,065,703 | 866,063 | |||||||||||
| Income tax expense | 131,750 | 69,000 | 258,450 | 151,300 | |||||||||||
| Income from continuing operations | 403,202 | 366,528 | 807,253 | 714,763 | |||||||||||
| Discontinued operations: | |||||||||||||||
| Loss from discontinued operations, net of income taxes | (36,953 | ) | (103,121 | ) | (134,534 | ) | (175,731 | ) | |||||||
| Gain on disposal of discontinued operations, net of income taxes | – | – | 660,042 | – | |||||||||||
| Net gain (loss) from discontinued operations | (36,953 | ) | (103,121 | ) | 525,508 | (175,731 | ) | ||||||||
| Net Income | $ | 366,249 | $ | 263,407 | $ | 1,332,761 | $ | 539,032 | |||||||
| Income (loss) per common share – basic and diluted: | |||||||||||||||
| Continuing operations | $ | 0.06 | $ | 0.05 | $ | 0.12 | $ | 0.10 | |||||||
| Discontinued operations | (0.01 | ) | (0.01 | ) | 0.08 | (0.02 | ) | ||||||||
| Net income (loss) | $ | 0.05 | $ | 0.04 | $ | 0.19 | $ | 0.07 | |||||||
| Weighted-average common shares outstanding – basic and diluted | 6,850,566 | 7,240,651 | 6,831,698 | 7,278,594 | |||||||||||
| CONSOLIDATED BALANCE SHEETS |
|||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 3,786,325 | $ | 1,960,775 | |||
| Equity securities | 1,586,120 | 2,261,437 | |||||
| Accounts receivable | 6,927,512 | 7,726,955 | |||||
| Notes receivable | 19,402 | – | |||||
| Prepaid expenses and other current assets | 200,808 | 162,235 | |||||
| Assets related to discontinued operations | 15,745 | 315,113 | |||||
| Total current assets | 12,535,912 | 12,426,515 | |||||
| PROPERTY AND EQUIPMENT, net | 89,325 | 33,413 | |||||
| OTHER ASSETS | |||||||
| Operating lease right-of-use assets | 418,135 | 534,037 | |||||
| Other assets related to discontinued operations | – | 520,551 | |||||
| Total other assets | 418,135 | 1,054,588 | |||||
| $ | 13,043,372 | $ | 13,514,516 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable and accrued expenses | $ | 5,486,658 | $ | 6,395,403 | |||
| Deferred Revenue | 331,400 | 278,300 | |||||
| Current portion of operating lease liability | 110,581 | 154,261 | |||||
| Liabilities related to discontinued operations | 677 | 274,425 | |||||
| Total current liabilities | 5,929,316 | 7,102,389 | |||||
| LONG-TERM LIABILITIES | |||||||
| Operating lease liability, net of current portion | 313,838 | 384,524 | |||||
| Other liabilities related to discontinued operations | – | 179,262 | |||||
| Deferred taxes | 56,300 | 149,200 | |||||
| Total long-term liabilities | 370,138 | 712,986 | |||||
| Total liabilities | 6,299,454 | 7,815,375 | |||||
| COMMITMENTS AND CONTINGENCIES (NOTE 13) | |||||||
| SHAREHOLDERS’ EQUITY | |||||||
| Preferred stock, no par value, 10,000,000 shares authorized, no shares issued and outstanding | – | – | |||||
| Common stock, no par value; 50,000,000 shares authorized, | |||||||
| 6,898,392 shares issued and outstanding September 30, 2026 | |||||||
| 7,188,088 shares issued and outstanding September 30, 2025 | $ | 1,282,355 | $ | 1,176,441 | |||
| Treasury Stock | (1 | ) | (209,112 | ) | |||
| Retained earnings | 5,461,564 | 4,731,812 | |||||
| Total shareholders’ equity | 6,743,918 | 5,699,141 | |||||
| $ | 13,043,372 | $ | 13,514,516 | ||||
Note – Operating EBITDA (excluding investment portfolio income)
| Three Months Ended | Six Months Ended | ||||||||||||||
| EBITDA Calculation | September 30, | September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Operating Income from Continuing Operations | $ | 528,673 | $ | 280,432 | $ | 928,923 | $ | 620,607 | |||||||
| Add: | |||||||||||||||
| Depreciation/Amortization Expense | $ | 3,300 | $ | 4,461 | $ | 7,762 | $ | 8,923 | |||||||
| EBITDA (Excluding Investment Portfolio Income) | $ | 531,973 | $ | 284,893 | $ | 936,685 | $ | 629,530 | |||||||
The Company elects not to include investment portfolio income because the Company believes it is non-operating in nature.
The Company uses Operating EBITDA as a measure of operating performance. However, Operating EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing its operating performance, investors should use Operating EBITDA in addition to, and not as an alternative for, income as determined in accordance with GAAP. Because not all companies use identical calculations, its presentation of Operating EBITDA may not be comparable to similarly titled measures of other companies and is therefore limited as a comparative measure. Furthermore, as an analytical tool, Operating EBITDA has additional limitations, including that (a) it is not intended to be a measure of free cash flow, as it does not consider certain cash requirements such as tax payments; (b) it does not reflect changes in, or cash requirements for, its working capital needs; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and Operating EBITDA does not reflect any cash requirements for such replacements, or future requirements for capital expenditures or contractual commitments. To compensate for these limitations, the Company evaluates its profitability by considering the economic effect of the excluded expense items independently as well as in connection with its analysis of cash flows from operations and through the use of other financial measures.
The Company believes Operating EBITDA is useful to an investor in evaluating its operating performance because it is widely used to measure a company’s operating performance without regard to certain non-cash or unrealized expenses (such as depreciation and amortization) and expenses that are not reflective of its core operating results over time. The Company believes Operating EBITDA presents a meaningful measure of corporate performance exclusive of its capital structure, the method by which assets were acquired, and non-cash charges and provides additional useful information to measure performance on a consistent basis, particularly with respect to changes in performance from period to period.

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